(NewsNation) — The president’s tough stance toward Europe is unsettling Wall Street, fueling what’s being called a “Sell America” trade.
The Dow Jones has plunged more than 870 points, while both the Nasdaq and S&P 500 erased earlier gains and ended Tuesday down over 2% — marking the worst day on Wall Street so far in 2026. Investors are pulling money out of U.S. assets, including stocks, the dollar and treasury bonds.
That sell-off is being driven by President Donald Trump’s tariff threats against European allies as he pushes for the United States to take over Greenland, possibly by force.
Some worry European allies are retaliating by selling off U.S. assets, in turn weakening the dollar. The “Sell America” trade reflects growing concerns among global investors and American allies more broadly that the U.S. may no longer be a reliable partner.
In an exclusive interview with NewsNation, Trump doubled down Tuesday, claiming Europe is angling for a deal.
“See anything they do with us, I’ll just meet it — all I have to do is meet it, and it’s gonna go ricocheting backward, but we’re not looking at that,” Trump said. “We’ll probably be able to work something out, possibly even during the next few days in Davos.”
When the dollar weakens and bond yields rise, borrowing gets more expensive. That can translate into higher mortgage rates, pricier car loans and added pressure on household budgets.
Trump also highlighted lower gas prices and solid economic growth. Real GDP grew 4.3% in the third quarter of 2025, and forecasts call for even stronger growth in the fourth quarter. However, Tuesday’s slide wiped out any gains the markets had made so far this year.
It’s putting even more pressure on Trump, who is heading into the World Economic Forum in Switzerland this week. Any escalation of the president’s Greenland threats could rattle the markets further, raising borrowing costs and weakening the dollar — and that’s before any potential tariffs take effect.
